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Why isn't something like buying goods and services from a company you (or your brother) own with investor money illegal? Unless I'm missing a reason why that wo
by cowpig 8y ago
Why isn't something like buying goods and services from a company you (or your brother) own with investor money illegal? Unless I'm missing a reason why that would be ok, that should be criminal?
And then I don't understand the link between founder control and unethical behaviour. I've seen plenty of cases of corruption in investor-controlled companies. The article doesn't even attempt to make a concrete connection despite implying it over and over.
- twunde 8y agoThe implication is that because the founder owns so much of the company, there are very few options left to the investors to correct this behavior. Here the options are to not invest in a new round or bring a lawsuit. At a normal company, the investors could force the founder out as CEO, bring in other execs or force the company to address specific issues.